Hollywood in the Net

Though the picture quality was beyond awful—unwatchable might be a better description—Movie88.com seemed to be the best indication yet of how close Tinseltown is to getting truly burned by the Internet. The rogue website was a virtual video rental store where visitors could screen some 3,600 films, including Hollywood blockbusters such as Gladiator, for just $1 per viewing. Operating out of Taiwan, Movie88 had no licensing or distribution agreements with the studios. Site founder S.E. Tan says he was doing film moguls a favor. "These Internet movies do not compare with the quality you see in the cinema," he says. "You...